HSBC’s flash China PMI has recorded a result of 50.1, indicating an expansion in its manufacturing sector.
The result was a significant improvement from last month’s result of 47.7, which was the weakest result in 11 months.
In the PMI, a score of 50 separates growth and contraction, with a number greater than 50 indicating growth.
Banking group HSBC said that the PMI indicated the industrial sector in China had stablised, with stimulus measures taking effect.
“China's manufacturing growth has started to stabilise on the back of modest improvements of new business and output,'' Qu Hongbin, the China chief economist for HSBC, told AFP.
Meanwhile, Markit has noted that the Euro-zone, the United States and China are – according to flash PMI results – in expansion.
The Wall Street Journal’s Market Watch notes that this is the first time since June 2011 that simultaneous growth had been recorded in the three regions.
“Our interpretation of the data would be that some of the weakness in global industrial production in recent months has been attributable to a mild inventory correction, and that this now appears to be largely over, helped by an improving trend in orders,” stated Barclays in a note to clients.